R T Transactions Source documents

STA E
(Act 1- SL13)
R
HE Transaction starts the cycle.
From transaction you get a source doc.
Sale of good & Services (Business deal)
Receipt/Invoice - evidence, provide info
Seller & Buyer
Receipt/till slips - proof of cash received
Cash transaction - Pay now
Cheque/proof of EFT - proof of invoices paid.
Credit Transaction - Pay later
Must have Date, inv number, names & amount. Journal Entries
Financial Statements
Known as books of first/original entry.
When Trail balance Balances - prepare financials. ACC
Final step in accounting cycle. OUN Use receipts/invoices to record transactions.

Includes income statement, Balance sheet & Cash flow T

CYCL ING
Sales - Cash Receipt Journal (CPJ)
Payments - Cash Payments Journal (CPJ)
statement.
Shows how business is going - making profit/loss
E Credit sales (Customers owe us) - Debtors Journal (DJ)
Credit invoices (We owe suppliers)- Creditors Journal (CJ)
SARS - needs to see how much TAX you must pay.
Enter source documents in date order - easier to see if
Investors use it to see if they want to invest.
transactions are missing/stolen.

General Ledgers
Trail Balance
Ledger is a summary of ledgers totals.
Ledger totals for here
Different accounts used for allocation of transactions.
Its a list of all accounts from General Ledger.
Capital, Owner's Equity, Assets, Liabilities, Income & Expenses.
Checks if Debits = Credits (Double-entry system)
Recording from Journals - called posting.
If it doesn't balance - must fix it
Done at end of the month.
 BALANCE SHEET INCOME STATEMENT

Shows financial position of business in a point This report shows income, expenses profit or loss
in time. for a period of time.
Overview of Owner's equity, Assets & Also called statement of profit & loss.
liabilities. Prepared using General Ledger totals - as
recorded in trail balance.
FINA
Also called - Statement of financial position.
Reports position of business. Reports Performance

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These reports gives info on business performance
& financial position.
Helps them to make good choices.
If owner wants to apply for a loan - bank needs
financials to see if they can repay.